Bitcoin price started an upside correction from the $11,350 support against the US Dollar. BTC is currently declining, but it could bounce back as long as it is above $11,650 or $11,550.

• Bitcoin formed a high near $11,825 and it is currently correcting lower.
• The price is testing a key support near $11,650 and the 100 hourly simple moving average.
• There was a break below a major bullish trend line with support near $11,710 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair must stay above the $11,650 and $11,550 support levels to climb higher towards $12,000.

Bitcoin Price Testing Crucial Support

Yesterday, we saw a decent upside correction in bitcoin price above the $11,650 resistance against the US Dollar. BTC even surpassed the $11,700 level and settled above the 100 hourly simple moving average.

The price struggled to gain momentum above the $11,800 level and a high is formed near $11,825. Bitcoin is currently correcting lower and trading below $11,750. There was a break below the 23.6% Fib retracement level of the recent recovery wave from the $11,349 low to $11,825 high. Moreover, there was a break below a major bullish trend line with support near $11,710 on the hourly chart of the BTC/USD pair. The pair is now testing a key support near $11,650 and the 100 hourly simple moving average.

Bitcoin price trades below $11,800. Source: 

The previous resistance near $11,650 is likely to act as a strong support. The next major support is near the $11,550 level. It is also close to the 50% Fib retracement level of the recent recovery wave from the $11,349 low to $11,825 high.

Any further losses could push the price back into a bearish zone below $11,550. In the mentioned case, it could revisit the $11,350 support in the near term.

Fresh Increase in BTC?

If bitcoin stays above the $11,650 support and the 100 hourly SMA, it could bounce back and climb higher. An initial resistance on the upside is near $11,800. The first major resistance is near the $11,850 level, above which the bulls are likely to aim a test of the $12,000 barrier in the coming sessions. Technical indicators: Hourly MACD – The MACD is slowly gaining momentum in the bearish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level, with a bearish angle. Major Support Levels – $11,650, followed by $11,550. Major Resistance Levels – $11,850, $12,000 and $12,200.